First Quarter 2018 Bordeaux and Burgundy Report

Many fine wine collectors and investors continue to perceive the Bordeaux futures market as an opportunity to acquire desirable Claret at discounted prices. This monograph is not intended to be a condemnation of the Bordeaux futures system. Rather it is meant to support the premise that it is always instructive to fully examine overall Bordeaux buying opportunities to attempt to discern the best investment/appreciation potential.

The qualitative assessments of the 2015 vintage from several famous and well-respected critics have been very positive with extensive praise and many high scores. However, other experienced experts caution that this vintage is not as uniformly excellent as initially perceived and
described, that many of the wines are problematic and have performed below their reputation, and that the expectations for the likely longevity of this vintage overall do not appear to be as good as other recent accoladed and proven vintages including 2010, 2009, 2005 and 2000.

Comparing the lowest currently advertised retail prices worldwide for recently released notable/collectible 2015 Bordeaux against recent auction sale prices (including Buyers Commission) for the same wines from 2010, 2009, 2005 and 2000; it becomes apparent that selective purchases in the secondary market (auctions) of these proven previous vintages may in some cases be more prudent than acquiring the same wines from the 2015 vintage. Especially given the concerns about overly generous scores and long-term aging potential. Possible future downgraded scores/assessments for some of the 2015 wines could also lead to a subsequent softening of prices for those wines.

The following chart compares and contrasts select Chateaux from these vintages, and also includes current 2016 vintage futures
pricing for reference.

Chateau

2016

2015

2010

2009

2005

2000

Lafite-Rothschild

624

585

746

756

796

1394

Latour

N/A

N/A

1095

896

717

779

Margaux

550

1347

647

647

615

764

Haut-Brion

534

539

448

651

637

647

Mouton-Rothschild

529

519

638

615

533

1722

Petrus

2447

3400

2987

2987

2987

3900

Cheval Blanc

659

695

681

663

654

717

La Mission-Haut-Brion

362

389

389

478

472

512

Pichon-Lalande

154

129

119

123

119

189

Ducru-Beaucaillou

179

163

179

235

184

179

La Conseillante

193

150

159

139

184

225

Trotanoy

240

275

231

231

219

219

Fine Burgundy continues to see meteoric increases in prices, and wines from many previously relatively unknown but very high quality producers are now commanding significantly higher prices. A number of storied family properties have been acquired by large companies with the wherewithal to better promote the wines, increase demand, and justify higher prices.

Thankfully, at least for the short term there remain a handful of rising superstars with wines that are currently still priced relatively reasonably. But given the ever-increasing global focus on Burgundy, it is likely that their wines will become much better known in the very near future with resultant increases in prices. Some producers/Domaines to consider are: Arnaud Tessier, Patrick Javillier, Jean-Philippe Fichet, Buisson-Charles, and Philippe (Damien) Livera (Domaine-Des-Tilleuls).

Compared to other rare and highly regarded Burgundy, the wines from the Hospice-De-Beaune continue to represent notable value, due in part to a lack of understanding on how to acquire the barrels offered at the charity auction, and the methods and contacts to facilitate the bottling. But even already bottled Hospices wines offered from time to time by some of the Burgundian Maisons tend to be a relative bargain.